1) Go to the Edit page (this is the top of the edit page)
2) Select Add by clicking the pencil in the icon
3) This buy condition pop-up will appear
4) Click on Value1 (the orange box). The pop-up with a range of data items below will appear
5) Choose the data item you want. In this case we have selected the price to sales ratio from the Multiples category
6) Click on the data item (i.e. price to sales). Then select your option to assess this metric against from Criteria. See the screen shot below. It can either be Value, a 3-year average, or a 3-year growth rate
7) See the example below. The user has chosen price to sales with Criteria being ‘value’. The Criteria selected determines the input you will choose in Value2.
8) The operator allows the user to choose how the metric is assessed against Value2. In this case “Less than”
9) Value2 is the buy condition that you are setting for the metric you have chosen in Value1
10) As the user has chosen a criteria of “value” and has entered the number “2”. This buy condition will simply look to buy any company with a price to sales ratio of less than 2 at that point in time
11) The final step is to choose either AND which can include other buy conditions, or OR which will look to buy companies with another buy condition
12) In this example the user has chosen OR:
13) The expression below is Buy companies with a price to sales ratio of less than 2 Or:
14) Buy companies with a EV to EBITDA ratio of less than or equal to 10:
That’s how you create a buy condition.
To create a sell condition, the process is the same. For example, you may decide to sell any company you hold if it is above 8 on a price to sales basis.